Real Property Tax Law and Legal Definition

Real property tax is a tax based on the value of the property. Real property taxes are governed by state laws, which vary by state. Appraisals which are the basis for property values can generally be appealed according to local rules.

Some of the reasons for appealing a tax assessment include:

  1. The assessor's market value estimate is higher than the actual market value. (This claim can be easily supported if you have recently purchased your property.)
  2. The primary assessment of the property is based on inaccurate information such as an incorrect measurement of a lot or building.
  3. The assessment is higher than those of similar neighboring properties.
  4. The assessed value is at a higher percentage of market value for your property than the prevailing township, or county median level, as shown in an assessment/sales ratio study.

Failure to pay real property taxes can lead to a tax sale of the property.